The path to success for Brazil’s fuel ethanol development strategy

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For the Brazilian energy sector, 2006 was a landmark year. Brazil * * For the first time in history, energy balance has been achieved, with imports and exports of fuel balancing. All this is because Brazil's production of ethanol made from sugar cane hit a record in 2006. Brazil leads the world in the use of renewable energy. The raw material utilization rate of renewable energy in Brazil has reached 44.6%, and the goal is to reach 50%, while the global average utilization rate is 13.5%. In addition, Brazil is at the forefront of the world in the use of ethanol to fuel vehicles and in research and development of energy resources in areas such as biogeneration, biodiesel and tidal power generation. 　　Brazil is now self-sufficient in energy production. With social participation and people's expectations for improved quality of life, investment in renewable energy will increase accordingly. 　　1． Legal policy guarantees for the development of ethanol fuel (1) Legal guarantee Brazil regards legislation as a necessary means to promote ethanol fuel and protects the interests of ethanol fuel, automobile manufacturers and consumers through legal forms. In 1975, Brazil promulgated a decree and authorized oil companies to add ethanol to gasoline in a certain proportion. In 1991, it promulgated a decree again, stipulating that 20% to 24% ethanol should be added to gasoline at gas stations across the country. Brazilian federal law clearly stipulates that when units at the federal level purchase or replace light utility vehicles, they must use renewable fuel vehicles including ethanol fuel. 　　(2) Tax policy Since 1982, Brazil has levied a 5% industrial product tax reduction on ethanol-fueled vehicles. Disabled vehicles and taxis using ethanol fuel are exempt from industrial product tax. Some states * * A 1% value-added tax reduction is imposed on ethanol-fueled vehicles. When sales of ethanol-fueled vehicles were sluggish, the value-added tax was completely exempted. Brazil also encourages the use of ethanol fuel through subsidies, setting quotas, monopolizing the purchase of ethanol, and using price and administrative intervention. 　　2． Focus on ethanol fuel development: Brazil has implemented an alternative energy development strategy for ethanol fuel since 1975, including increasing ethanol production and improving the performance of ethanol gasoline. 　　(l) Encourage the development of ethanol fuel industry 　　 * * We will jointly invest with private owners to expand the sugarcane planting area and build a large number of ethanol fuel production plants. From 2003 to 2004, Brazil's sugarcane output was about 350 million tons, and it is expected to exceed the 400 million tons mark within five years, which can provide sufficient raw material guarantee for the production of ethanol fuel. Brazil currently has more than 500 ethanol fuel processing plants, and the technical level of production technology and processing equipment is among the best in the world. 　　(2) Focus on technological innovation and comprehensive utilization. Brazil attaches great importance to cultivating and promoting excellent sugarcane varieties. The average sugarcane yield is 78 to 85 tons/hectare, which is 15% to 20% higher than the international average level. The sugar content is 14% to 15.5%, which is 1.5 to 3 percentage points higher than the international level. Brazil focuses on reducing energy consumption in the ethanol production process. The cane energy utilization rate is as high as 71%. Both bagasse and cane leaves are comprehensively utilized and converted into mechanical energy and electrical energy. Brazilian ethanol fuel production enterprises have basically achieved energy self-sufficiency, with a self-sufficiency rate of 100% in thermal or mechanical energy and 95% in electricity. 　　(3) Support technology research and development and application. Since the 1970s, Brazil has begun to organize scientific research institutions, universities and enterprises to carry out research and development of ethanol gasoline and ethanol fuel vehicles. The first ethanol fuel vehicle was developed and successfully tested in 1979. After nearly 30 years of continuous improvement and improvement, the overall technology of Brazil's ethanol fuel vehicles has become quite mature. At present, cars have basically reached the level of similar gasoline cars in terms of power, acceleration performance, and driving range. In 2003, major international automobile manufacturers launched gasoline and ethanol dual-fuel vehicles in Brazil, some of which were priced less than US$300 higher than gasoline vehicles. 　　In particular, dual-fuel vehicles that use flexible fuel detection technology can automatically adjust the ratio of oxygen and fuel and the engine injection system based on sensors to determine fuel type and mixed fuel components, so that different fuels can achieve maximum efficiency. Now, the proportion of ethanol added to Brazilian gasoline is nearly 25%. This move also * * Improves the anti-knock properties of gasoline and makes combustion more complete. 　　3． Achievements in ethanol fuel development (l) Ethanol production and cost Brazil is the world's largest sugarcane grower and the world's largest ethanol fuel exporter. Brazil's annual ethanol production is 16 billion liters (equivalent to 84 million barrels of oil), accounting for 12.6% of national oil consumption. The cost of producing ethanol from sugar cane in Brazil is US$0.19/liter, which is obviously more cost-effective than the US$0.33/liter in the United States and the EU's US$0.55/liter. 　　(2) After more than 30 years of efforts in the field of ethanol fuel application, Brazil has not only become a major producer of ethanol, but its production technology has become increasingly mature. It is also the most successful country in replacing petroleum with ethanol fuel. * * One of the world’s only brands that does not supply pure gasoline * * . Currently, there are about 6 million vehicles using ethanol gasoline in Brazil, and more than 2 million vehicles using ethanol fuel. Brazil has also pushed the use of ethanol fuel into aviation and other sectors. 　　(3) Promote international trade and cooperation In order to adapt to the international market demand for ethanol fuel and related technical equipment, Brazil plans to increase ethanol exports from the current 500 million liters to 5 billion liters within 3 to 5 years, and vigorously promote ethanol production technology and equipment abroad. There have been many * * Expressing its willingness to cooperate with Brazil on ethanol projects, Brazil has made substantial progress in cooperation with Switzerland, Japan and India. Brazil exports 100 million liters of ethanol to Switzerland every year, and exports ethanol to Japan for up to 3 billion U.S. dollars every year. India and Brazil have reached an ethanol production technology cooperation agreement and purchased 10 to 15 sets of ethanol production equipment. Brazil has established operations in 10 countries in Latin America and Africa, including Venezuela. * * Undertaken the construction of 16 ethanol processing plants and provided a complete set of equipment. 　　(4) Reduce pollution and protect the environment. The pollution level of ethanol gasoline to the environment is only 30% of that of traditional gasoline. It can reduce about 25% of carbon monoxide and carbon dioxide emissions from automobiles. It can also reduce the emissions of harmful substances such as hydrocarbons and nitrogen oxides. Due to the widespread use of ethanol gasoline, Brazil's carbon dioxide emissions alone decreased by 90 million tons from 1979 to 2002. Ethanol gasoline and ethanol fuel have unparalleled environmental advantages over traditional liquid fuels. 　　(5) Ease Brazil’s oil dependence. While ethanol has replaced 40% of Brazil’s gasoline consumption, Brazil * Proven oil reserves have also increased significantly in recent years. As Brazil enters its third year of introducing and producing flex fuel vehicles (flex fuel vehicles, vehicles that can run on a variety of fuels such as ethanol and gasoline), several major Brazilian automobile manufacturers expect that by the end of this year, 100% of the new cars they produce will be flex fuel models. 　　For many years, Brazil * * The new energy policy implemented has achieved remarkable results. Now it has not only achieved self-sufficiency in energy supply, but also has the ability to export new energy products abroad. 　　During the oil crisis in the 1970s, Brazil paid a heavy price for its over-reliance on imported oil, which led to soaring prices and setbacks in economic development. Brazil * * We made up our minds to vigorously implement the new energy policy of the "Ethanol Plan" promulgated in 1975, and promoted the development of ethanol fuel using sugar cane as the main raw material according to local conditions. The goal was to reduce oil imports and achieve energy diversification. After more than 30 years of hard work, Brazil has now become the world's leading ethanol producer and consumer. According to incomplete statistics, there are currently about 16 million cars using ethanol gasoline (that is, adding a certain proportion of anhydrous alcohol to gasoline) in Brazil, and the number of ethanol cars using water-containing alcohol as power fuel has reached more than 2 million. At the same time, ethanol fuel has also been introduced into the aviation industry. In October 2004, the world's first aircraft using ethanol fuel developed by Embraer successfully made a test flight, which meant that Brazil had once again succeeded in promoting the use of ethanol fuel in an all-round way.